What Is EthereumPoW and How Does It Work?
What Is EthereumPoW and How Does It Work?
EthereumPoW is a network started by former Ethereum miners in response to the merge update. ETHW is listed on several crypto platforms.
Thus, miners who expressed their disagreement left and formed a new network that continues to use the proof-of-work algorithm.
What is EthereumPoW?
EthereumPoW (ETHW) is a ‘hard fork’ of the Ethereum blockchain following the latest upgrade of the network. Supporters of the hard fork include miners who are unhappy with the transition to the new algorithm. As part of the update, Ethereum switched to a proof-of-stake algorithm, while the fork version was still working on a proof-of-work algorithm.
ETHW is similar to the legacy Ethereum network in that it is a branched version of the blockchain. Tokens and smart contracts of the old network now run on the specified fork.
Where did ETHW come from?
The Ethereum PoW fork came about because a small but largely active group of participants in the crypto community felt that the consensus proof-of-work mechanism should be followed. Among these groups, there are many miners who want to protect their profits after Ethereum switches to consensus working mechanism on September 15. In recent months, prominent miner Chandler Guo has supported ETHW, arguing that Ethereum will take away cryptocurrency miners and their jobs. Additionally, founder Justin Sun Tron joined in supporting ETHW for the same.
The embedded token for the EthereumPoW network is ETHW, which only some exchanges support so far. In the short time since the launch of the EthereumPoW network, several projects have started to support the ecosystem. These include several decentralized wallets
To verify transactions and create new blocks, as with other PoW cryptocurrencies like Bitcoin, ETHW miners must use their computing power to solve a random math problem that results in ETHW.
Unlike the more efficient proof of stake, proof of work is considered a more decentralized way to verify transactions because it requires more computers on the network to verify and verify transactions.
ETHW miners will solve arbitrary mathematical problems to verify transactions and issue new tokens to prevent system abuse. As a reward, they will receive ETHW, the main asset of the ETHPoW chain.
How to Buy and Store EthereumPoW?
Many cryptocurrency platforms support the purchase of Ethereum tokens with value confirmation. Although Guarda Wallet supports the token, you cannot purchase the token on Guarda. You can just send, exchange, receive ETHW and keep it. If you want to keep it in your wallet, there are various ways to get it.
The first method demand token was distributed to users holding ETH during the merger. The second way is to exchange other tokens in your wallet that can be used in exchange for ETHW.
What is the Future of Ethereum Proof-of-Work Token?
The PoW consensus scheme has an incentive structure where miners have to perform many hashes to determine the hash for the first matching block, resulting in higher power consumption. Meanwhile, the consensus mechanism adjusts the complexity of block hashing as the computing power of the network increases, resulting in a network-wide increase in hashing rate.
The energy consumed by losing miners is also wasted, forcing Ethereum to switch to a proof-of-stake consensus mechanism. ETHW is attractive to miners who have already invested in mining hardware. However, the PoS consensus method is less energy intensive and allows inexpensive scaling of networks.
The proof of stake mechanism is still in its infancy. It could revolutionize blockchain security and make mining obsolete in the long run. However, today it is unknown whether PoS consensus algorithms will lead to the complete cessation of PoW mining.
ETHW Competitors
ETHW and VB
Like ETHW, Ethereum Classic was forked from Ethereum. Even though VB uses a PoW algorithm like ETHW, ETC still has an edge due to its significant hashrate growth and steady price growth. Although ETHW has been around for a while, we cannot ignore the fact that ETC has been on the market for longer.
Looking at the current situation and the challenges with ETHW, it is difficult to say whether it will do well in the market like ETC.
ETHW vs. BCH
Bitcoin Cash is another forked coin. It was forked from Bitcoin and uses the PoW mechanism just like ETC and ETHW. However, just like ETC, it has been around for a long time and crypto users know very little about it, unlike BCH, ETHW.
conclusion
Although the project has several challenges, its future remains uncertain. ETHW is a network similar to the old Ethereum in that it is a branched version of this blockchain. This means that tokens and smart contracts from the old network are now running on that fork. The Ethereum PoW fork is supported by a group of miners who have stated their intention to maintain the PoW chain post-merger; This is a commonly used term for the network's transition to PoS.
The network was launched shortly after the merger took place. Its beginnings were quite complicated, as the network faced several technical problems, including the network identification problem.
